Oneida Common Council proposes 3 percent tax levy hike; no public comment on Madison County budget

Members of the Oneida Common Council proposed $250,000 in cuts to the proposed 2012 budget and agreed to raise the property tax levy by 3 percent Tuesday night.

The council has been meeting weekly to review the $17.15 million spending plan proposed by outgoing Mayor Leo Matzke last month, which called for no increase to tax rate.

On Tuesday, councilors reviewed proposed cuts one by one, including $2,000 for the city’s annual Memorial Day parade and $7,500 from the Madison County Historical Society’s $15,000 line item. Councilors recommending reducing the mayor’s expense budget from $1,500 to $1,000 and eliminating raises for lifeguards proposed by Recreation Director Brandon Lovett, who said he had difficulty finding qualified candidates for the positions last year.

"We can try," Lovett said when asked if the raises were essential. "Worse case scenario, we will have to cut hours at the pool."

Councilor Max Smith said it felt more like a monsoon than a rainy day.

"In these times, we have to look hard at what to fund and what not to fund," Smith said. "These are hard questions."

"We just can’t afford to do everything," said vice-mayor Michael Kaiser.

After the cuts, the board agreed to restore two positions, adding $62,500 for a firefighter who would have been laid off under Matzke’s budget and $71,000 for an additional police officer.

Councilors also added $6,600 to fully fund the mosquito abatement program and $45,000 for a drainage project that Matzke had deferred. The savings and revenue from the tax increase will also bolster the city’s contingency account (from $50,000 to $70,000) and add $90,000 to the city’s fund balance.

The three percent increase to the tax levy will force the council to override the state’s property tax cap. The state Legislature approved the tax cap in late June in an effort to limit the annual growth of local property taxes to 2 percent, or the rate of inflation. Municipalities can adopt a local law overriding the tax cap under certain circumstances.

In a letter to councilors last week, Matzke warned that more layoffs could be necessary in 2013 and spoke against raising taxes to build up the city's fund balance or increase contingency funds.

He also emphasized his concerns about increasing taxes.

"In today's economy, any increase is inappropriate, " Matzke said. "If there is ever a time that our city government needs to live within its means, the time is now."

A vote on the 2012 budget will likely be held Dec. 6.

No public comment on Madison County budget

No members of the public spoke at two public hearings on Madison County’s proposed $102.6 million budget Tuesday.

The spending plan requires a 1.996 percent increase to the county's tax levy and a slight increase to the property tax rate, proposed at $7.51 per $1,000 in assessed value.

County officials said state mandates constitute the majority of the increases, while "sizeable cuts" were made to requests for software, capital projects, vehicles and equipment.